1. Reducing Turnover and Increasing Retention Tips and Tactics for Supervisors

2. © Business & Legal Reports, Inc. 0509 Session Objectives You will be able to: Identify the costs of excessive turnover Calculate and analyze your department’s turnover rate Determine causes of turnover among your employees Understand what your employees want from their jobs Develop an effective turnover reduction strategy

3. © Business & Legal Reports, Inc. 0509 Session Outline Direct and indirect costs of turnover Voluntary vs. involuntary turnover Determining causes of turnover What employees really want Tactics for retaining employees

4. © Business & Legal Reports, Inc. 0509 Employee (Dis)Satisfaction Large percentage of American workers dissatisfied with jobs Many plan to move on within a few years National voluntary turnover rate is around 20% a year Monthly turnover rate is over 3%

5. © Business & Legal Reports, Inc. 0509 The High Cost of Turnover Direct costs Indirect costs Total costs

6. © Business & Legal Reports, Inc. 0509 Voluntary Versus Involuntary Turnover Involuntary turnover Voluntary turnover

7. © Business & Legal Reports, Inc. 0509 Calculating and Analyzing Your Turnover Rate Company turnover rate Department turnover rate Comparing turnover rates

8. © Business & Legal Reports, Inc. 0509 Calculating and Analyzing Your Turnover Rate (cont.) Variation in rates You have a problem if: Annual voluntary turnover higher than 20% Department has higher turnover rate than company

9. © Business & Legal Reports, Inc. 0509 Determining the Causes of Turnover Exit interviews Conversations with employees

10. © Business & Legal Reports, Inc. 0509 Determining the Causes of Turnover (cont.) Questionnaires Surveys

11. © Business & Legal Reports, Inc. 0509 Facts About Turnover Questions?

12. © Business & Legal Reports, Inc. 0509 What Employees Really Want Good, safe work environment Good boss and co-workers Opportunities for growth and development Meaningful, challenging work Having enough time to do quality work Recognition

13. © Business & Legal Reports, Inc. 0509 What Employees Really Want (cont.) Freedom to use judgment and initiative Being part of a team Fairness and consistency Clear goals and well-defined tasks Deciding how to perform tasks Influence and decision-making opportunities

14. © Business & Legal Reports, Inc. 0509 What Employees Really Want (cont.) Adequate resources Being able to take pride in their work and the organization Sharing ideas and solving problems with co- workers Being consulted when affected by decisions

15. © Business & Legal Reports, Inc. 0509 Hire the Right People Explain the job Define your expectations Look for a good fit

16. © Business & Legal Reports, Inc. 0509 Get Off to a Good Start Orientation Training Coaching Teamwork

17. © Business & Legal Reports, Inc. 0509 Provide a Healthy, Safe, And Secure Environment Health Safety Security

18. © Business & Legal Reports, Inc. 0509 Provide Leadership and Direction Set clear goals Define responsibilities and set limits Explain policies Be fair and consistent Deal with all complaints promptly

19. © Business & Legal Reports, Inc. 0509 Challenge Employees Assign meaningful work Encourage initiative Delegate decision-making responsibility

20. © Business & Legal Reports, Inc. 0509 Challenge Employees (cont.) Cross-train Build self-confidence Remove barriers to performance

21. © Business & Legal Reports, Inc. 0509 Provide Opportunities Training and coaching Promotions More responsibility Special assignments

22. © Business & Legal Reports, Inc. 0509 Offer Constructive Feedback Reinforce positive behavior Correct inadequate performance Make good use of performance reviews Set a good example

23. © Business & Legal Reports, Inc. 0509 Promote Open Communication Share information Listen to employees’ concerns Welcome ideas and suggestions Encourage interaction among employees Manage conflict

24. © Business & Legal Reports, Inc. 0509 Recognize Achievement Reward exceptional performance and outstanding achievement Don’t forget to recognize regular work, too Provide incentives Celebrate group success

25. © Business & Legal Reports, Inc. 0509 Offer Adequate Support and Supervision Be accessible Show employees that you value them Provide guidance and instructions Help people learn from their mistakes Stick up for your people

26. © Business & Legal Reports, Inc. 0509 Provide Sufficient Resources Tools and equipment Supplies and materials Training Time

27. © Business & Legal Reports, Inc. 0509 Remain Flexible Help employees balance their work and personal lives Capitalize on diversity Accept change

28. © Business & Legal Reports, Inc. 0509 Retention Strategies Questions?

29. © Business & Legal Reports, Inc. 0509 Key Points to Remember Employee turnover is a costly problem A voluntary annual turnover rate in excess of 20% or above the company average may indicate a problem You need to identify causes of turnover and develop strategies to retain employees